Louisville, Colorado (PRWEB) December 31, 2013
As 2013 comes to a close, the IRS issued 2014 contribution limits for IRAs, 401(k)s and other retirement savings plans.
The contribution limit for IRAs is unchanged at $5,500 for 2014. The additional catchup limit for individuals 50 and older is still $1,000.
The contribution limit for 401(k) plans—as well as 403(b) and most 457 plans—will remain
unchanged at $17,500. The catchup contribution limit of $5,500 for 401(k) owners over the age of 50 also stays the same from 2013.
New Direction IRA, an IRA custodial* and administrative services provider, reminded clients today that Individual 401(k)s have special contribution rules. According to the company:
Individual 401(k)s must be established by the end of 2013 in order for contributions to be made to the account for 2013. Contributions as the employer to an Individual 401(k) for 2013 can be made through the extended deadline of the company’s tax return, either Sept. 15 or Oct. 15. Employee deferrals are typically made per paycheck (unless a self-employed individual does not receive regular paychecks, in which case other filing rules apply.)
Contribution limits are indexed and change slightly most years, New Direction IRA CEO Bill Humphrey said. But, even though one plan type may change, others may not so account holders should check limits every year.
“Many clients look forward to January 1 because they can make the new year’s contribution to their plan on that date,” Humphrey said. “Getting your contribution in early is a great strategy to maximize your account and get your funds invested and growing.”
Furthermore, Humphrey added, “some like to make the contribution early so they aren’t tempted to spend the funds personally.”
For more information about contributions or year-end filing, New Direction IRA offers extensive educational resources on its website, http://www.newdirectionira.com. You can check in with an IRA expert via webinar, live workshop or by calling a client representative to discuss your retirement strategy.
New Direction IRA is a trusted provider of investor education and record keeping services for self-directed IRA and precious metals IRA holders. Since its inception in 2003, New Direction IRA has been at the forefront of the self-directed retirement investment market. The company enables individual investors to take control of and diversify their tax-advantaged retirement funds using alternative asset opportunities such as real estate, precious metals, LLCs, notes and lending, and more. Headquartered in Louisville, Colorado, New Direction IRA administers more than $640M in assets on behalf of over 8,300 account holders. Visit the website at http://www.newdirectionira.com.
DISCLAIMER: New Direction IRA, Inc. does not render tax, legal, accounting, investment, or other professional advice. If tax, legal, accounting, investment, or other similar expert assistance is required, the services of a competent professional should be sought. CIRCULAR 230 NOTICE: As required by U.S. Treasury rules, we inform you that if any Federal tax advice is contained in this email, including attachments (in spite of our best efforts not to provide any tax advice), it is not intended or written to be used, and cannot be used, by any person (1) for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service, or (2) to promote, market, or recommend to another party any matter addressed herein.
*New Direction is a trusted provider of Custodial and Administrative services for traditional and Roth IRAs, HSAs, and other tax advantaged plans. Physical custody and administrative oversight is provided by First Trust Company of Onaga, in Kansas. Regulatory account oversight comes from the Office of the State Bank Commissioner of Kansas.